Beverages - Wineries & Distilleries · NYSE
Current Price
$24.87
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Brown-Forman Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink and ready-to-pour products, ready-to-drink cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. The company offers its products primarily under the Jack Daniel's, Reserve, Old Forester, Coopers' Craft, Herradura, el Jimador, New Mix, Korbel Champagnes, Sonoma-Cutrer, Finlandia, GlenDronach, Benriach, Glenglassaugh, Chambord, Slane, and Fords Gin brands. It is also involved in the sale of used barrels, bulk whiskey, and wine; and provision of contract bottling services. The company serves retail customers and consumers through distributors or state governments; and retailers, wholesalers, and provincial governments directly. It has operations in the United States, Germany, Australia, the United Kingdom, Mexico, and internationally. The company was founded in 1870 and is headquartered in Louisville, Kentucky.
ROIC (TTM)
12.2%
ROE (TTM)
19.9%
FCF Yield
6.25%
Based on trailing twelve-month data, BF-B shows a free cash flow per share of N/A and a ROIC of 12.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 6.25% are important context metrics when evaluating BF-B's stock valuation relative to peers.
The intrinsic value of BF-B depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether BF-B is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $24.87. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Brown-Forman Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Beverages - Wineries & Distilleries industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BF-B's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Brown-Forman Corporation, this means projecting how much free cash flow the Beverages - Wineries & Distilleries will produce over the next 5-10 years, then discounting those amounts to today's dollars. BF-B's ROIC of 12.2% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BF-B, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
